FTSE 100 hits one-month low as Trump signals tariff escalation
NEW YORK (March 31) British stocks closed lower on Monday, with the benchmark index hitting a one-month low, as investors avoided risky assets on worries over U.S. President Donald Trump's upcoming announcement of extensive tariff plans on April 2.
The blue-chip FTSE 100 (.FTSE), fell 0.9%, ending March 2.6% lower after a 1.6% rise in February. However, it jumped over 5% for the quarter, its best since the fourth quarter of 2022, as investors have sought alternatives to U.S. equities.
The midcap FTSE 250 (.FTMC), index dropped nearly 2%, contributing to a 4.1% decline in March and reaching a nearly 12-month low.
Global stocks plunged after Trump said on Sunday the reciprocal tariffs he is expected to announce on Wednesday will include all nations, adding to existing levies on aluminium, steel and autos.
However, Britain hopes to negotiate a deal to avoid these tariffs, with Prime Minister Keir Starmer and Trump discussing "productive negotiations" for a UK-U.S. economic prosperity deal during a Sunday phone call.
Industrial metal miners (.FTNMX551020), stocks fell 3.7%, as copper prices dropped to their weakest in more than two weeks.
Anglo American (AAL.L), Glencore (GLEN.L), and Rio Tinto (RIO.L), were among the biggest losers on the FTSE 100, falling between 2.8% to 4.8%.
Further, British airline Virgin Atlantic flagged a slowdown in bookings and demand was slowing in the U.S. after a strong start to 2025.
The travel and leisure (.FTNMX405010), sector fell 3.4%, with airline stocks including British Airways owner IAG (ICAG.L), and Wizz Air (WIZZ.L), down 6.6% and 5.9%, respectively.
Among individual stocks, Burberry (BRBY.L), shares fell 4.2%, dragging the midcap index, after HSBC cut its price target.
Pets at Home Group (PETSP.L), fell 8.5% after warning of a fiscal 2026 profit plunge due to rising costs and weak demand.
Associated British Foods (ABF.L), dropped 1.6% after its fast fashion chain Primark's head, Paul Marchant, resigned with immediate effect.
On the macro front, Bank of England data revealed British mortgage approvals softened in February, with consumer credit growing at a slower pace than the previous month.
KitcoNews
